wefox secures EUR 151 million to implement new strategy

The European insurtech company wefox has completed a financing of EUR 151 million. The funds consist of a capital increase of EUR 76 million, primarily from existing investors, and the refinancing of an existing credit line with EUR 75 million from Searchlight Opportunities Fund II. The financing follows the completion of a comprehensive restructuring program and puts wefox on track for a profitable full year 2025.

Strategic focus on profitable core business

With the new financing, wefox intends to implement its strategic realignment: In future, the scale-up will focus on its asset-light MGA (Managing General Agent) model as well as on intelligent, technology-supported sales models. The completion of the sale of wefox Insurance AG (Liechtenstein) and the Italian units marks an important milestone in the transformation process.

Our focus on the MGA model and smart sales solutions makes us the ideal partner for insurers and brokers alike.

Market positions in three European core markets

wefox plans to use the fresh capital for targeted expansion in its three most important markets:

• In Austria, wefox is considered the leading digital platform provider for insurance brokers and is the largest wholesale broker in the country.
• In the Netherlands, wefox is the market leader in term life insurance via the TAF brand.
• In Switzerland, wefox is one of the leading players in the retail business and offers its customers comprehensive risk and pension advice.

With a clear growth strategy, a scalable sales platform and strategic partnerships with insurers, wefox aims to increase its sales growth and sustainably improve its margins.

Joachim Müller, CEO of wefox

The insurance industry is undergoing profound change - driven by new technologies, regulatory requirements and changing customer needs.

Joachim Müller, CEO of wefox

Change in the Board of Directors

As part of the refinancing, there have also been changes to the Board of Directors of wefox Holding AG:

• Prateek Puri, Partner at Searchlight Capital Partners, and Joachim Müller, CEO of wefox, have joined as new members.

Declining rounds and poor valuations

wefox has repeatedly attracted attention with large rounds in recent years and has also been a recurring topic on the Startbase: for example 650m $ 2021 and 400m $ 2022. Now the turnaround is coming with a smaller round with the outlook for a profitable full year according to the company. In addition, wefox is also struggling with poor customer ratings. On Trustpilot (as of January 9, 2025), the insurtech has a rating of 1.1 stars with 309 reviews, 97% of which were given no more than one star. It remains to be seen whether the change in strategy will trigger a lasting turnaround for the start-up.